Corporations and unions are limited
to $1,000 per year and individuals to $1,100

Lucas Kandl

He who pays the musician chooses the tune

One
of the most important aspects of managing elections lies in regulating the amount of money that candidates and parties may
spend. Unlike the United States, which limits
the amounts which individuals and groups can contribute to election campaigns, the historical Canadian approach was to limit
the amounts that candidates and parties can spend. However, Canadian federal election financing rules have changed considerably
since 2004. New rules were brought in at the start of 2004 to limit any individual from contributing more than $5,000 in any
calendar year to a party and its candidates. Corporations and trade unions are capped at $1,000 per calendar year. The limits
on individual donations were subject to an inflation adjustment and stand at $5,200 for the current fiscal year ending March 31, 2006; corporate and union donations remained fixed at $1,000. Parliament passed new limits on political donations that came into effect on 2007. Corporations and trade unions now can no longer give money directly to political parties or
candidates. Individuals are limited to donating no more than $1,100 to each of the political parties, ridings associations,
and individual candidates; donations to individuals may be made at each stage of riding nomination, nomination, election campaigning,
and party leadership nominations.

Each
registered party is also given expense limits for spending by the central party machinery, based on the number of voters registered
in the ridings they are running candidates in. Thus, the limit per riding varies with the size of the electorate. The preliminary limits for party spending in each riding have been set. You can also look up the 2004 spending limits that each registered political party is allowed to spend in each of the 308 ridings, which is in addition to the amounts
spent by their candidates. The total amount a party can spend is based on the number of ridings they contest and the number
of electors in those ridings.

The expense limits for the
political parties in the 2006 elections are as follows:

Name of Party

Election Expenses Limit

Animal Alliance Environment Voters Party

$68,154.97

Bloc Québécois

$4,676,676.52

Canadian Action Party

$2,150,020.88

Christian Heritage Party
of Canada

$2,617,633.05

Communist Party of Canada

$1,234,417.80

Conservative Party of Canada

$18,278,278.64

First Peoples National Party
of Canada

$285,326.57

Green Party of Canada

$18,278,278.64

Liberal Party of Canada

$18,278,278.64

Libertarian Party of Canada

$659,531.77

Marijuana Party

$1,353,566.56

Marxist-Leninist Party of
Canada

$4,494,786.75

New Democratic Party

$18,278,278.64

Progressive Canadian Party

$1,555,632.40

Western Block Party

$273,026.95

The Canada Elections Act stipulates that subsidies shall be paid to registered political parties
based on the number of votes they received in the previous federal election. Section 435.01 set a threshold of votes received
that parties had to meet before qualifying for the quarterly allowances. Parties had to receive either 2% of the national
vote or 5% of the votes in each of the ridings they had contested. Elections
Act in May 2000 placed a $3,000 limit on "third party" spending in each constituency and $150,000 for a national advertising
campaign.

OTTAWA, Tuesday, January 2, 2007 — The Chief Electoral Officer of Canada, Jean-Pierre
Kingsley, announced today that Elections Canada is prepared to implement election financing changes resulting from
the passage of Bill C-2, the Federal Accountability Act. The Act
received royal assent on December 12, 2006.

The new legislation reduces annual contribution limits to political
entities. Furthermore, only individuals (Canadian citizens or permanent residents) may now make political donations. In addition,
candidates are prohibited from accepting any gift or other advantage that might appear to have been given to influence them
in the performance of their duties if elected to the House of Commons. Candidates must make a confidential report to the Chief
Electoral Officer after each election on any gifts received.

Under the new legislation, the responsibility for appointing
(and dismissing) returning officers now rests with the Chief Electoral Officer rather than the Governor in Council. In addition,
the responsibility for prosecuting offences under the Canada Elections Act
is transferred from the Commissioner of Canada Elections to the new Director of Public Prosecutions. Finally, the Access to Information Act is expanded to cover the Office of the Chief Electoral
Officer.

Some provisions of the Federal Accountability Act came into force at royal assent and others on January 1, 2007, others will come into effect six months after royal assent, and still others will come
into force on a date yet to be fixed by the Governor in Council.

Amendments to the Canada Elections Act that came into effect on January 1, 2007

New, lower limits on the annual contributions
individuals may make to registered parties, their candidates, nomination contestants and registered associations, and to leadership
contestants and independent candidates

As of January 1, 2007,
the new limits are:

No more than $1,100 in any calendar
year to each registered political party

No more than $1,100 in any calendar
year to the various entities of each registered political party (registered associations, nomination contestants and candidates)

No more than $1,100 to the leadership
contestant or the leadership contestants of their choice in a particular leadership contest

No more than $1,100 to each independent
candidate for a particular election

These limits are indexed on April 1 of each year.

Only individuals who are Canadian citizens
or permanent residents can give a contribution to registered parties, candidates, nomination contestants, registered associations
and leadership contestants

Amendments to the Canada Elections Act that came into effect on royal assent

Extension of the period for instituting
prosecutions under the Canada Elections Act to 10 years after
the day on which the offence was committed (but not later than 5 years after the Commissioner of Canada Elections becomes
aware of the facts giving rise to the prosecution)

Transfer to the Director of Public Prosecutions
of the responsibility for the prosecution of offences under the Canada Elections
Act; the Commissioner of Canada Elections will continue to be responsible for investigations and compliance agreements,
for applying to the courts for injunctions during election periods and for the deregistration of registered parties in specified
circumstances

Amendments to the Canada Elections Act that will come into effect on a date determined by the Governor in Council

Transfer of the authority to appoint
and dismiss returning officers from the Governor in Council to the Chief Electoral Officer

Amendments to the Canada Elections Act that will come into effect six months after royal assent

Registered parties and registered associations
prohibited from transferring trust funds to a candidate

Candidates required to report to the
Chief Electoral Officer any gifts they receive that total more than $500 from one person or entity

Each broadcaster must make available up to 390 minutes for political
parties to purchase for advertising during the election campaign.

PARTY200620042000

Liberal Party

141:00

120.00

113:00

Canadian Alliance

--

--

59:30

Conservative Party

111:00

86:30

48:00

Bloc Québécois

50:30

39:00

40:30

New Democratic Party

49:00

37:00

40:30

Natural Law Party

--

--

17:00

Green Party

21:30

18:30

15:30

Marijuana Party

4:00

16:30

6:00

Marxist-Leninist Party

4:00

16:30

14:30

Canada
Action Party

2:30

16:00

14:30

Communist Party

1:30

15:30

6:00

Christian Heritage Party

3:30

6:00

14:30

Progressive Canadian Party

1:00

--

--

Libertarian Party

0:30

--

--

Absolutely Absurd Party

--

6:00

--

National Alternative Party

--

6:00

--

Ontario Party of Canada

--

6:00

--

If a candidate wins at least 10% of the votes in his or her riding, they are also eligible for up to a reimbursement
of up to 60% of their expenses

Name of Party06
Election Expense Limits

Animal Alliance Environment Voters Party

$68,154.97

Bloc Québécois

$4,676,676.52

Canadian Action Party

$2,150,020.88

Christian Heritage Party
of Canada

$2,617,633.05

Communist Party of Canada

$1,234,417.80

Conservative Party of Canada

$18,278,278.64

First Peoples National Party
of Canada

$285,326.57

Green Party of Canada

$18,278,278.64

Liberal Party of Canada

$18,278,278.64

Libertarian Party of Canada

$659,531.77

Marijuana Party

$1,353,566.56

Marxist-Leninist Party of
Canada

$4,494,786.75

New Democratic Party

$18,278,278.64

Progressive Canadian Party

$1,555,632.40

Western Block Party

$273,026.95

Political Parties must register with Elections Canada in order to issue tax receipts for donations, and in order
to qualify for government funds which are paid to parties after an election. Major changes to election financing came into
effect in 2004 and provide healthy reimbursements to both political parties and candidates. If a party has received
more than 2% of the national vote or 5% in the ridings it contested, then it may qualify for a payment equal to 60% of its
election expenses - up from 22.5% in the 2000 election; the threshold for this reimbursement is currently being challenged
in court by a number of the smaller parties registered in the 2004 election. If a candidate wins at least 10% of the votes
in his or her riding, they are also eligible for up to a reimbursement of up to 60% of their expenses. Indeed new terms that
were approved just before the 2004 election allow a party with as few as 250 members to field only one or two candidates and
still qualify for reimbursements.

Teddy Roosevelt's advice that, "We must drive the special interests
out of politics. The citizens of the United States must effectively control the mighty commercial
forces which they have themselves called into being. There can be no effective control of corporations while their political
activity remains."